Green Finance Cooperation
The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBoC) announce enhanced green finance cooperation, aiming to promote green finance development and jointly develop green finance products.
Last April, MAS and PBoC established the Green Finance Taskforce (GFTF), planning to cooperate on green and transition finance to promote the transition to a low-carbon economy in Asia. The enhanced green finance cooperation comes from the second GFTF meeting.
Related Post: PBoC and MAS Set Up the Green Finance Taskforce
Contents of Green Finance Cooperation
At the second GFTF meeting, the work plan of the two sides is as follows:
- Taxonomies and Definitions: MAS and PBoC will complete the mapping of Singapore Asia Taxonomy (SAT) and International Platform on Sustainable Finance’s (IPSF) Common Ground Taxonomy (CGT) by the end of this year to help enterprises issue green bonds and green loans. The two sides also held a meeting on the transition taxonomy to deepen interoperability in transition activities.
- Products and Instruments: Singapore Exchange and China International Capital Corporation are building Green Corridors to strengthen green capital flows between the two sides. The two sides will first encourage Singapore issuers to issue green panda bonds in the Chinese onshore bond market. Singapore’s real asset management company CapitaLand is the first issuer to issue a 1 billion RMB, three-year sustainability-linked panda bond.
- Technology: Singapore’s Metaverse Green Exchange and Beijing Green Exchange are working together to develop a carbon accounting and decarbonization rating platform. The platform will aggregate carbon emission data of companies to support financial institutions in Singapore and China to provide green financial services. The platform’s data accounting will also be consistent with the sustainable taxonomies of the two countries.
In addition to the above main aspects, the meeting also discussed topics such as biodiversity and ESG data models.
Reference:
Monetary Authority of Singapore and People’s Bank of China Advance Collaboration in Green and Transition Finance
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